Should You Consider Staking or Renting Your Crypto?

Crypto staking and crypto renting have proven to be highly lucrative ways to make money while investors wait for their crypto to mature, but what are the benefits of each and which one should you choose?

If you're wondering how you can start making money from your crypto investments without selling them, have you ever considered staking or renting your crypto? Nebeus offers both options so you can decide which one accommodates better to your needs.

A quick recap of how crypto renting and crypto staking work:

  • Crypto renting works much the same way as any other traditional rental service. You lend your crypto to a vendor for a determined amount of time and receive an interest or reward because of it.
  • Crypto staking relates to the proof of stake (POS) process, which verifies transactions through a blockchain network. With crypto staking, you can use your crypto investments to support a blockchain by validating transactions and, in that way, earn a reward.

Crypto staking and renting have proven to be highly lucrative ways to make money while investors wait for their crypto to mature, but what are the benefits of each and which one should you choose?

Crypto-renting benefits

Nebeus offers a range of crypto rental services that allow you to earn up to 12.85% Rewards-per-year (RPY). This is a key point as the provided reward is high compared to the others in the market or other crypto-earning options.

Depending on your experience and how much you are looking to rent, Nebeus has several tailored rental programs to suit your needs.

Stablecoin renting programs:

  • Baobab

Minimum 4-month lock-in period with a 1000 USDC minimum deposit, you can expect to receive up to a 12.85% RPY.

  • Bonsai

Minimum 1-month lock-in period with a 1000 USDC minimum deposit, with rewards per year up to 3.5%.

Crypto renting programs:

  • Sequoia

Minimum 4-month lock-in period with a 0.0025 BTC minimum deposit, you can expect to see up to a 6.5% RPY.

  • Juniper

Minimum 1-month lock-in period with a 0.0025 BTC minimum deposit, with rewards per year up to a 3.5%.

One of the main benefits of renting your crypto to Nebeus is that it allows you to be paid in a different coin than the one rented, such as ALGO, AVAX, BCH, DASH, EOS, EUR, LTC, USDC, USDT, XLM, or XRP, depending on the program you choose. In this way, you can avoid paying conversion fees and receive gains in a different cryptocurrency.

Staking benefits

In much the same way as crypto renting allows you to make money without selling, staking will enable you to make a passive income whilst also allowing you to contribute to the overall value of the blockchain associated with that coin.

However, there are some unique benefits to staking:

By staking your crypto, you are improving the overall security of a blockchain by on-chain staking. This is because you are pledging coins to the proof of stake system, which requires all transactions to be validated before they can be added to the blockchain, and new coins can be minted.

Thus, by staking your chosen crypto, you are contributing to that coin's overall safety and a potential increase in value, increasing your chances of becoming a blockchain validator and earning potential rewards.

For those reading this who have been familiar with the crypto world for some time, think of staking as the more environmentally friendly version of crypto mining. It requires user participation to add new transactions to the blockchain and earn more rewards. However, staking does not require purchasing the hardware, which doesn't cause the environmental damage commonly associated with crypto mining.

In off-chain staking, though the purpose is no longer contributing to verifying transactions on the blockchain, it allows users to gain rewards on cryptocurrencies that do not have a staking program, so they really cannot be staked inside their blockchain, such as Bitcoin.

Differences between Crypto renting and staking

On the surface, crypto renting and crypto staking are incredibly similar; both allow you to make a passive income until the time arrives to either sell or make purchases with your crypto.

However, as we have seen, once you delve further into staking and renting, you begin to see the unique differences. In particular, with staking, you not only get to earn interest on your investment, but you also get to participate in the validating process.

If you'd like to know which service is best for you, take a look at a detailed comparison to find out:

Lock-up period & unstaking

Renting programs have different lock-up periods starting in one or four months and are extendable up to 36 months. Because of that, you have to respect the agreed fixed term without having access to your funds for the corresponding time.

By staking with Nebeus, there is no minimum time to lock up your digital assets, and you can unstake whenever it is best for you. In this way, you can access your investments at any time. This means that if the market suddenly shows an upward trend and you want to sell your crypto, it can be easily done.

Rewards

In both earning services, the payout of the rewards is monthly, so you do not have to wait around for the contract to end before starting to see the benefits.

Due to different lock-up periods, the earning services offer distinct rewards. In crypto renting, you can see up to 12.85% RPY and in staking, you can expect up to 7.5% RPY. Despite both offering high rewards, crypto renting in Nebeus has particularly prominent returns compared to the other competitors in the market.

Available coins

In crypto renting, you can choose from 12 coins (2 stablecoins and 9 cryptos) to lock up to gain a reward. While in crypto staking, you have more than 23 different coins to stake.

However, Nebeus always incorporates additional coins into their crypto services, so you can expect to see new available coins every month.

Final words of recommendation

If you, like many crypto investors, are in this for the long haul and don't want to sell your investments just yet, choosing to rent or stake your crypto is a perfect option.

Not only can you earn passive income, but you can also be a part of a more environmentally friendly crypto future that doesn't have the damaging effects of traditional crypto mining.

Here at Nebeus, we've been leading the way in crypto earning alternatives for some time, and we know how to maximise our customer's crypto investments.

If you've found this blog interesting and want to start earning on your crypto, sign up for a Nebeus account to rent or stake (or both) your crypto today.

La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y se puede perder la totalidad del monto invertido.

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